Electric vehicles (EVs) accounted for a record 24.9% of the new car market in June, despite relaxed quotas on sales being implemented by the government earlier this year.

In April, Prime Minister Keir Starmer announced that while the ban on the sale of new petrol and diesel cars by 2030 would be maintained, manufacturers would be able to sell hybrid cars, such as the Toyota Prius and Nissan e-Power, until 2035. They would also not be obliged to sell as many EVs in the earlier part of the transition.

The New AutoMotive think tank said it expects car makers will be able to “comfortably exceed” existing mandates this year, putting into question why the government decided to change the targets.

The headline target for car makers is that 28% of total sales should come from EVs in 2025. But firms are able to generate additional credits to meet the target by exceeding CO₂ emissions targets on their petrol and diesel vehicle sales. New Automotive therefore calculates that the real target is more like 22% – a rate they are comfortably beating at the moment.

A total of 46,700 new electric cars were registered across the UK in June, marking a substantial 45.5% increase on the same month in 2024. The electric van market also demonstrated significant growth, with year-to-date registrations up by 50% compared to 2024. This signals that UK businesses are increasingly choosing to electrify their fleets to benefit from lower running costs, New AutoMotive said.

The surge in EV adoption is set against a backdrop of declining fossil fuel car sales. Petrol car registrations fell by 11.4% in June compared to the previous year, while diesel cars accounted for just 5.6% of the market.

UK car makers breathed a sigh of relief last month as the government was able to secure a deal with the US, allowing it to export vehicles at a reduced 10% tariff rate for the first 100,000 vehicles shipped. The US, which was the largest export market for UK car makers last year, raised tariffs in April on UK cars to 25% for all passenger vehicles and light trucks on top of a flat 10% tariff on most other UK goods. The tariffs saw exports to the US fall by around half in the intervening months.

Ben Nelmes, CEO of New AutoMotive, said: “The UK’s electric car market is showing astonishing growth. These fantastic figures are the result of hard work and billions in investment by car makers who recognise that the future is electric, as well as consumers who increasingly recognise the benefits.

“A typical household can save £1,500 by switching to an electric car, and as more consumers discover these savings we are seeing growing consumer demand for electric cars.

“The UK’s ZEV [zero emission vehicles] mandate is putting these savings within reach of more UK households and businesses, with another 46,000 motorists now set to benefit.”

Dan Caesar, CEO of Electric Vehicles UK, said: “[This is] another encouraging set of sales statistics. While the EV industry would welcome a clearer plan for growth, the robustness of battery EV [BEV] sales as a percentage of the market demonstrates we’re in a new phase of uptake. 

“Savvy consumers see the trend and the savings. Better and cheaper BEVs, in addition to genuine competition, should see sales in the second half continue to grow.”